Earlier, the Saudi Capital Market Authority (CMA) approved the company’s application to hold an IPO, commencing on Dec. 5, which will offer 7.2 million shares, representing 30 percent of the company’s share capital. The offering, which will close on Dec. 11, will be open to all Saudi nationals.

Institutional investors participating in the bookbuilding process may subscribe up to 100 percent of the “eXtra” shares offering. Following individual subscription to the IPO, the number of shares allocated to institutional investors may be reduced to 3.6 million shares, or 50 percent of the offering.

HSBC Saudi Arabia Ltd. has been appointed as the financial adviser, lead manager and lead underwriter for the IPO, whereas Blominvest Saudi Arabia has been appointed as co-underwriter.

Founded in 2003 and headquartered in Alkhobar, eXtra is considered the largest consumer electronics and home appliances retailer in Saudi Arabia — at more than three times the size of its nearest competitor in terms of number of stores.

With an annual turnover of more than SR2 billion and earnings of SR126.5 million for the 12-month period from July 2010-June 2011, “eXtra is today uniquely positioned to realize its aim of becoming the regional consumer electronics and home appliances retail leader by 2020,” said Abdullah A. Al Fozan, chairman, United Electronics Company (eXtra).

“The launch of bookbuilding signals the start of an extremely transparent process of offering eXtra’s shares, and we will maintain that commitment to transparency moving ahead,” he added.

Currently, eXtra provides the over 9 million customers it serves annually with more than 12,000 products across its 21 stores — serving 90 percent of the population of Saudi Arabia.

The company has announced that it intends to open three more stores by the end of this year.